Questions You Should Ask an Insurance Adviser Before Buying Cover
Before buying insurance, you should ask an adviser how they are paid, which insurers they compared, and how each policy defines disability, because these answers influence both cost and claim outcomes.
Use this checklist in your first conversation.
About the adviser
Are you on ASIC’s Financial Advisers Register, and can I see your Financial Services Guide?
How are you paid: commission, fee, or both, and how much in dollar terms?
Which insurers did you compare, and are any excluded from your research?
Do you have experience with doctors in my specialty and career stage?
About the policy
How does the policy define total and partial disability, and does the definition change over time?
How is my benefit calculated at the time of claim?
Are premiums variable or age-stepped variable, and what are the likely increases over time?
What are the key exclusions, loadings or special conditions in my quote?
Can I keep my cover if I change specialty, reduce hours or take a career break?
Is the cover guaranteed renewable, and on what terms?
About my situation
Should any cover be held inside super, and what are the trade-offs?
How would this cover interact with existing insurance and medical indemnity?
What are the tax implications of each type of cover?
About the future
How often will you review my cover, and is that included in your fee?
What support do you provide if I need to make a claim?
Frequently Asked Questions
Where can I check an adviser’s credentials?
ASIC’s Financial Advisers Register lists licensed advisers and their authorisations.
Is commission-based advice a problem?
Not necessarily. Similar to a mortgage broker who compares lenders for you and is usually paid by the lender rather than charging you an upfront fee, an insurance adviser paid by commission is typically paid by the insurer, so you don’t pay a separate fee for the comparison.
We Educate. You Decide.
Understanding your options is the first step. To see where you stand,
This article contains general information only and does not take into account your objectives, financial situation or needs. It is not personal advice. Before acting on any information, consider whether it is appropriate for you and read the relevant Product Disclosure Statement and Target Market Determination. Insurance rules and product features change, so check current terms.
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